On January 1, 2013, Hatch Co. borrowed $100,000 cash from First Bank by issuing a four-year,6percent note.

Question:

On January 1, 2013, Hatch Co. borrowed $100,000 cash from First Bank by issuing a four-year, 6 percent note. The principal and interest are to be paid by making annual payments in the amount of $28,859. Payments are to be made December 31 of each year, beginning December 31, 2013.

Required
Prepare an amortization schedule for the interest and principal payments for the four-year period.